Suppose that the percentage annual return you obtain when you invest a dollar in gold or the stock market is dependent on the general state of the national economy as indicated below. For example, the probability that the economy will be in “boom” state is 0.15. In this case, if you invest in the stock market your return is assumed to be 25%; on the other hand if you invest in gold when the economy is in a “boom” state your return will be minus 30%. Likewise for the other possible states of the economy. Note that the sum of the probabilities has to be 1–and is.
State of economy
Based on the expected return, would you rather invest your money in the stock market or in gold? Why?
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During our continued review of business plans, please consider the value of a business plan as a resource for sustained company operations. Watch the video and answer the questions below.
To examine and review various types of business plans.
To create a potential business plan that could be used for a new start-up business that could be used in securing financial assistance from external sources.
How can a business plan assist with keeping a company on a successful path for continued growth?
When might an entrepreneur, business leader, or manager reference a business plan?
Conduct a little research on business plans, discuss the design and key components that should be included within a business plan.
Your response must be in your own words.Your initial post should be 275 words minimum that reflects research and not opinion.Provide citations for the source of your learning.